A society is an organization created to fulfill the need for a non-commercial entity that can sustain ongoing charitable or social activities such as education, religion, culture, music, art, and sports. Societies are generally non-profit organizations established to support these causes.
The need for a legal entity arises so that the society can own, manage, and utilize its assets and finances effectively for promoting charitable or social objectives as intended by its founders or donors. Registering a society under the Societies Registration Act, 1860 grants it legal recognition, making it a distinct entity in the eyes of law.
By being registered, a society also gains uniformity in operations and better governance, enabling it to carry out scientific, charitable, literary, or cultural activities in an organized manner. In essence, society registration provides legal status, strengthens operational credibility, and allows the organization to function as a recognized legal entity in India.
Before initiating any action, it is essential to understand the objective behind it. The Societies Registration Act outlines several key purposes for which a society can be registered:
Encouraging and promoting fine arts.
Spreading political education among the public.
Establishing and managing charitable trusts.
Advancing science and literature.
Creating funds for military orphans.
Overall, the main goal of registering a society is to support activities that contribute to the welfare and betterment of society. The objectives are broad and inclusive, allowing societies to undertake various legal and social initiatives beyond the listed purposes.
Registering a society offers several important benefits:
Provides the entity with a legal identity.
Enables the society to open and operate a bank account in its own name.
Grants legal recognition before courts, government authorities, and other forums.
Offers various tax benefits under the Income Tax Act.
Allows the society to enter into contracts independently.
Gives the society the legal capacity to initiate or face lawsuits.
A society, once registered, functions similarly to a partnership firm but enjoys several advantages over an unregistered organization. To form a society, there must be a minimum of seven members. The following entities or individuals can be part of the Memorandum of Association of the society:
Individual Indian citizens
Foreign nationals
Partnership firms
Limited companies
Other registered societies
Foreign companies
Indian companies
Note: Minors are not eligible to become members of a society.
To register a society, the following documents must be submitted:
When deciding on a name for your society, the following points should be carefully observed:
The chosen name must comply with the Societies Registration Act, 1860. If the name is already in use, the registration authority will reject it.
The name should not be offensive or contrary to the policies of the State Government or Government of India.
It must adhere to the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950.
Avoid using any words or phrases that could be considered objectionable or disrespectful to the government or society.
The registration of a society can be done either offline or online. Here’s a rephrased explanation of the process:
Offline Process:
The required documents must be submitted in two copies to the office of the Registrar along with the applicable fees. The Registrar reviews the application, signs the first copy, and returns it to the applicant, while retaining the second copy for verification purposes. Once the Registrar is satisfied with the authenticity of the documents, an Incorporation Certificate along with a unique registration number is issued, legally recognizing the society.
Online Process (Example: Rajasthan):
Login on SSO Portal: New users must first register on the portal using their email ID.
Select Society Registration: Choose the relevant option from the main menu.
Provide Member Details: Fill in details of members and attach supporting documents for members and the registered office.
Save Application: After verifying all the information, save the application.
Pay Fees and Submit: Make the payment of registration fees and click submit to forward the application to the Registrar. The status of the application can be tracked on the official society registration portal using the application number.
Download By-laws and MOA: Once approved, log in again to download the Memorandum of Association (MOA) and By-laws.
After completing these steps, the society is officially recognized as a legal entity and can operate in its intended capacity.
Once all the incorporation formalities are completed, the approval and issuance of the registration certificate typically take around 12 to 15 days.
Once a society is registered, it must adhere to the following legal formalities:
Apply for a PAN Card in the name of the society.
Open a current bank account under the society’s name.
File Income Tax Returns annually.
Submit AGM resolutions, financial statements, and the list of members to the Registrar of Societies regularly.
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